Much like many other asset classes Gold managed to rally on weak US numbers suggesting a possible rethink of US monetary policy in the June meeting. Prices however failed to see a follow through pulling back Thursday as it approached the daily consolidation ceiling. Note market has bought Gold to historic highs of geopolitical issues…
The relative size of yesterday’s candle underscores the potential creation of a gap on policy rates between the US and New Zealand. The flat retail sales creates pressure for the Fed to consider easing sooner, note though that while the monthly CPI was less than forecast at 0.3% annualized numbers were inline with the consensus…
The initial response by oil to weak US economic numbers was to ease, a weaker economy in its biggest user means weaker demand at a time when top oil importer China has been reducing its purchase of middle east oil. From the supply side the US Energy Information Administration reported that strategic reserves dropped more…
With yesterday’s US data, we may now have the BoE and the Fed vying for the dubious honor of cutting interest rates first, starting an easing cycle among the major Central Banks. Ahead we have little in the calendar that could potentially turn the current rally. With two more days of trading still, we see…
US economic data has once again proved to be a market mover in all the wrong ways for the dollar. April CPI came out weaker than expected at 0.3% month-on-month, and other numbers underscored a potential soft landing in the making as Retail Sales were flat and New York Area manufacturing dipped further. Ahead we…
Overview The April US Consumer Price Index (CPI) report revealed a softer-than-expected inflation rate, increasing by 0.3% for the month and registering a 3.4% year-over-year increase, slightly below market expectations. Core CPI, excluding volatile food and energy costs, also rose by 0.3%, showing a slight deceleration from the previous month’s 0.4% increase. This report, coupled…
The safe haven angle for trading gold continue to stay in the back seat our bounce yesterday largely a technical affair. Ahead we have a catalyst for potentially clearing the descending triangle hypotenuse or getting a rejection with US Consumer Price Index on the card at 1230GMT. Any sign of prolonged inflation pressures will make…
Financial markets these days appear to be inured already with the violence we see globally that unless actual supply disruptions appear traders and investors will just shrugged it off. Tuesday saw oil prices dropping to its two week consolidation lows though absent any fresh angle from supply and demand we do not expect a further…
We normally do not cover AUDUSD but the combination of yesterdays bounce and Australian Wage Price Index at 0130GMT is very interesting. Consensus forecast for WPI is at 0.9% quarter-on-quarter and should we push above it justifies a pop higher in the charts. Consider that unlike other central banks where the calls are for an…
We were surprised by Cable’s ability to hold on to gains and the extent of yesterdays move given the lack of impetus. Ahead we have numbers from both the UK and the US though of immediate concern for us will be the Claimant Count Change data at 0600GMT as a strong read here and hints…